Key benchmark indices further extended gains and hit fresh intraday high in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex was up 138.47 points or 0.49% at 28,481.48. The gains for the Nifty 50 index were higher than the Sensex's gains in percentage terms. The Nifty was currently up 60.50 points or 0.69% at 8,804.85. The Sensex hit highest level in more than thirteen months. The Nifty hit highest level in more than sixteen months.
The Sensex rose 189.24 points or 0.66% at the day's high of 28,532.25 in mid-afternoon trade, its highest level since 23 July 2015. The barometer index gained 20.09 points or 0.07% at the day's low of 28,363.10 at the onset of the trading session. The Nifty rose 74.85 points or 0.85% at the day's high of 8,819.20 in mid-afternoon trade, its highest level since 15 April 2015. The index gained 9.70 points or 0.11% at the day's low of 8,754.05 at the onset of the trading session.
The market breadth indicating the overall health of the market was positive. On BSE, 1,347 shares rose and 1,216 shares declined. A total of 219 shares were unchanged. The BSE Mid-Cap index was currently up 0.64%, outperforming the Sensex. The BSE Small-Cap index was currently up 0.36%, underperforming the Sensex.
In overseas stock markets, European stocks were mixed today, 31 August 2016, as global markets gear up for Friday's US jobs report. The non-farm payrolls report will be eagerly watched by the US Federal Reserve and could determine whether the central bank increases interest rates in September. Asian stocks also settled mixed. US stocks slipped yesterday, 30 August 2016, as the dollar strengthened on expectations that the Federal Reserve was moving closer to raising interest rates. US consumer confidence rose to an 11-month high in August, with households more upbeat about the labour market, data showed overnight.
Most metal and mining stocks declined. Jindal Steel & Power (down 1.42%), Vedanta (down 1.43%), Tata Steel (down 0.99%), Steel Authority of India (down 0.2%), JSW Steel (down 0.44%), Hindustan Zinc (down 0.61%) and National Aluminium Company (down 1.54%) edged lower. NMDC (up 0.14%), Hindalco Industries (up 0.09%), and Bhushan Steel (up 0.36%) gained.
High Grade Copper for December 2016 delivery was currently up 0.29% at $2.0825 per pound on the COMEX.
Hindustan Copper rose 1.99% after the company said it has executed a joint venture agreement with Chhattisgarh Mineral Development Corporation for copper mining. The announcement was made during trading hours today, 31 August 2016. The joint venture company (JVC) will undertake exploration, mining and beneficiation of copper and its associated minerals in Chhattisgarh. In the JVC, the equity share holding of Hindustan Copper will be 74% and Chhattisgarh Mineral Development Corporation (CMDC) will hold the remaining 26% stake. Initially the JVC will be formed with an authorized paid up capital of Rs 10 crore to meet the cost of exploration. CMDC will be allotted 26% equity in the JVC for consideration other than cash which would be against the services to be provided by CMDC for facilitating the varied licenses and approvals from Chhattisgarh state government. Any further capital requirement in JVC for development of mine & beneficiation plant may be structured on mutual consent, depending on the project viability post exploration. CMDC is a Chhattisgarh state government enterprise.
Shares of most power generation and power distribution companies gained. NHPC (up 1.62%), Tata Power Company (up 0.07%), Adani Power (up 1.27%), Power Grid Corporation of India (up 0.19%), Reliance Infrastructure (up 0.87%) and Reliance Power (up 0.28%) gained. NTPC (down 1.08%) and Torrent Power (down 0.79%) declined.
Shares of state run coal mining major Coal India declined 0.33%.
Zee Entertainment Enterprises was up 1.27% at Rs 535.90 after the company announced that it has entered into definitive agreements to sell its loss making sports broadcasting business to Sony Pictures Networks India. The stock hit a high of Rs 543.85 so far during the day which is a 52-week high for the counter. Zee will sell its sports broadcasting business to Sony Pictures Networks India and its affiliates for all-cash consideration of $385 million. Zee's sports broadcasting business is carried through TEN Sports channels brand that operates in several countries including the Indian sub-continent, Maldives, Singapore, Hong Kong, Middle East and Caribbean. TEN Sports holds cricket broadcast rights from major cricket boards in the world. It also holds rights to wrestling, football, tennis, golf among other sporting events across the world. The announcement was made during market hours today, 31 August 2016.
The transaction is expected to be completed within 4 to 5 months. Zee said that the decision to sell the sports business is a part of reshuffle of the product portfolio. Zee is currently focusing on transforming itself into an all-round media and content company comprising of five verticals viz. broadcast, digital, films, live events and international business. The sports broadcasting business clocked revenue of Rs 631 crore for the year ended 31 March 2016 (FY 2016), constituting 10.79% of Zee's consolidated revenue. The sports business incurred a net loss of Rs 37.20 crore in FY 2016.
IDBI Bank rose 1.8% after the bank said that it has raised Rs 1500 crore through issue of Basel III compliant Additional Tier-1 bonds on private placement basis to strengthen bank's capital adequacy. The announcement was made after market hours yesterday, 30 August 2016. The bonds are perpetual bonds with a coupon rate of 11.09% per annum.
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